is a distinct and separate legal and tax entity from its owner(s). A corporation has its own rights, privileges and liabilities distinct from those its owners or managers. A corporation is owned by its shareholders and is managed and controlled by its board of directors who appoint the officers and agree on the policies and transactions to be undertaken by the corporation.
gives your company several benefits over the standard Ontario Business Registration. There are a number of good reasons for doing so but there are an equal number of things you need to be aware of before making the final decision.
Canada (Federal) Corporations
grants you some additional benefits over the Ontario Registration. There are some pros and cons you should compare before making the final decision.
This is the simplest form of operating a business. A sole proprietorship is an unincorporated business that is owned by one individual. The business has no existence apart from the owner. Only one owner is responsible for making all of the business decisions and, therefore, earns all the profits, but also assumes all of the risks and obligations. The owner includes the income and expenses of the business on his or her personal tax return.
A partnership is a relationship between two or more persons carrying on a business with a view to making a profit. Some individuals choose a partnership as the manner in which to carry on a business because of its ease of formation and dissolution, as well as its overall lack of formalities. However, like a sole proprietorship, one of the primary disadvantages to choosing a partnership as your business form, includes the unlimited personal liability of each partner for all of the debts and obligations of the partnership. In other words, every partner is liable for all the debts incurred by the other partners while acting in the course of business, regardless of the capital contribution of individual partners. Also, the owner may be liable for the actions of employees in the course of their employment.
HOW TO REGISTER A BUSINESS OR INCORPORATE A COMPANY ?
Once you have made the decision to register your business as a sole proprietorship or partnership or to incorporate, the next step is to where to incorporate or register this. Don't worry, we will get it done for you.
Moreover, when you register your business or incorporate a corporation with the government’s registration division, you still have to register with the tax department. You may be required to apply for GST and PST and payroll tax numbers (if you have employees) and Import/Export tax numbers.
Federal company is registered usually within 24-72 hours. Whereas Ontario Company is registered usually within 2 hours in the same business day. Similarly Sole Proprietorship and general Partnerships are also registered in the same business day.
ANNUAL FILING FEE:
There is annual return filing fee of $20-$40 for Federal company every year but there is no annual filing fee for Ontario Corporation. Master Business License is only valid for 5 years.